US planning AI sanctions on China – Bloomberg

Washington is reportedly seeking to restrain Beijing’s ability to develop advanced artificial intelligence

Washington is considering imposing additional restrictions on China that would further restrain its ability to develop advanced artificial intelligence, Bloomberg reported on Thursday.

The measures would be the latest move in a long-running trade battle between the world’s two largest economies.

The sanctions could be unveiled as soon as next week, the news agency said, citing its sources. The measures follow months of deliberations by US officials and “intense lobbying” by domestic microchip makers, it added.

The restrictions could reportedly hit dozens of Chinese companies that produce equipment for making semiconductors, and several chip manufacturing plants, some of which have ties to the Chinese tech giant Huawei.

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China has warned that it will take “necessary actions” to protect its firms if US President Joe Biden’s administration further escalates chip controls.

Reuters reported last week, citing a letter from the US Chamber of Commerce, that new export restrictions against up to 200 Chinese microchip companies could be announced within days.

Washington’s actions have “severely disrupted” the international economic and trade order, as well as the global semiconductor industry, China’s commerce ministry spokesperson He Yadong said at a news conference on Thursday.

”If the US insists on escalating control measures, China will take necessary actions to resolutely protect the legitimate rights of Chinese enterprises,” he added.

The US and China have in recent years been jostling for domination in key technology areas, including semiconductors. Washington has tightened export controls to prevent Chinese firms from buying certain American components, citing risks to national security.

In 2019, Donald Trump, then serving his first term as US President, banned six Chinese companies that work on AI from doing business with US firms. In 2020, the Trump administration placed sanctions on Semiconductor Manufacturing International Corp (SMIC), China’s top chip manufacturer.

READ MORE: US tightens export controls on advanced chips to China – Reuters

The ban was expanded in 2022 to include all state-owned microchip factories in China, and to cut Chinese firms off from certain chips made anywhere in the world using American tools. A number of steep tariff hikes were also imposed on Chinese-made products varying from electric cars and solar cells to steel, aluminum, and face masks.

China has repeatedly criticized the US import curbs, claiming that they run counter to globally recognized market rules.

In 2023, Beijing imposed restrictions on the export of critical minerals and rare earths used in various industries, including defense.